A-AS Level (CIE) Business Studies Paper-1: Specimen Questions with Answers 5 - 5 of 50

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Question 5


Describe in Detail


Discuss the importance of leadership in a business.


Leadership is an important factor for making any type of organizations successful. Without a good leader, organization cannot function efficiently and effectively. Since the organization is created by human beings for some specified aims and objectives, the activities of its members need to be directed in a particular manner. Leaders affect the activities direction in an organization

The importance of good leadership can be discussed as follows:

  • Motivating Employees As discussed earlier, motivation is necessary for work exercising his leadership, motivates the employees for high performance. Good leadership in the organization itself is a motivating factor for the individual՚s performance. Higher the motivation, better would be the performance.
  • Creating Confidence: A good leader creates confidence in his followers by giving them advice and direction to get good results from them.
  • Building Morale: High morale induces high productivity among the employees and promotes organizational stability.

Thus, good leadership is important in different aspects of management functions. Good leadership leads to a successful, and on the other hand poor human performance in any organization can be linked to poor leadership in an organization.

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